(Updates to close)
By Nikhil Nainan
July 4 (Reuters) - Australian shares ended lower on Wednesday, erasing nearly all their gains from the previous session with financials bearing the brunt of the losses.
The S&P/ASX 200 index .AXJO fell 0.4 percent to 6,183.4 at the close of trade, below Tuesday's finish at 6,210.2.
Shares fell despite retail sales data for the month of May coming in slightly higher than expected, rising 0.4 percent. annual growth in retail sales slowed to a sombre 2.5 percent, well below the 5 percent-plus that used to be considered commonplace.
"The retail sector has been under sustained pressure for many years," said Michael McCarthy, chief strategist at CMC Markets and Stockbroking.
Financial stocks accounted for around a half of the losses on the benchmark as investors booked profits, with the main financial index .AXFJ down 0.7 percent.
Platinum Investment Management PTM.AX , which has investments in China, was the top percentage loser, closing about 9 percent lower to a near 11-month nadir as trade war concerns weakened Chinese asset prices.
Among the "Big Four" banks, National Australia Bank NAB.AX and Commonwealth Bank of Australia CBA.AX were the biggest drags, falling 1.3 percent and 0.5 percent, respectively.
A slight recovery in commodity prices helped steady the resources sector after China's central bank assured markets it would keep the yuan stable. MET/L IRONORE/
BHP BHP.AX pared earlier losses to close flat, while Rio Tinto (LON:RIO) RIO.AX fell 0.8 percent. The metals and mining index .AXMM closed 0.1 percent lower.
The benchmark gold index .AXGD climbed 1 percent, supported by gold prices hitting a one-week high as the U.S. dollar softened. GOL/
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.3 percent, or 27.95 points to finish the session at 9,025.64.
a2 Milk Company ATM.NZ was the worst performer on the index, falling 3.4 percent after strong gains in the previous session when its supply contract with Synlait Milk SML.NZ was extended.